HARJINDER SINGH GILL,KOLKATA vs. ITO, WARD-40(3)/ KOLKATA, KOLKATA

At the time of hearing of the assessee pressed ground no.2, which is extracted below:-

In the appellate proceedings , the ld CIT(A) dismissed the appeal of the assessee when the assessee failed to file any reply / submission to various opportunities allowed by the ld. Commissioner of Income-tax (Appeals). The ld. Counsel of the assessee at the outset, submitted that the case is squarely covered by the order passed by the ld. AO in the case of Guramrit Singh Gill, wherein the case of the assessee was reopened u/s 147 of the Act for the same reason and the ld. AO

The ld. DR on the other hand stated that the fact of non execution of joint development agreement was never before the AO and accordingly was not verified by the ld. AO. The ld. DR submitted that in all fairness the appeal may be restored to the AO for the same very reasons.

After hearing the rival contentions and perusing the materials available on record, we find that though the joint development agreement was entered into by the assessee with M/s Monark Dealcom Pvt. Ltd. in respect of landed property located at premises no.125A, Motilal Nehru Road, Kolkata of which he was 50% owner and remaining 50% belonged to Guramrit Singh Gill. We note that no money was ever received under this agreement and this was never performed or executed. We also note that the said land was sold by both the co-owners .i.e assessee as well as his brother Shri Guramrit Singh Gill on 28.08.2017 for the agreed consideration and the capital gain arose in the assessment year 2018-19 and would be paid accordingly. We observed that in the case of another co-owners Shi Guramrit Singh Gill, the same plea has been accepted by the ld. AO in the reassessment proceedings for the same assessment year 2013-14 and no addition was made. The relevant paras are extracted below:-

In the result, the appeal of the assessee is allowed.